Cost per impression (CPM) marketing is a pricing model for advertising in which the advertisers pays the content publisher for 1,000 views, called impressions, of an ad. This is also sometimes called cost per mile or cost per thousand. Unlike many other promotional structures, CPM is entirely distribution based, not performance based. In other words the publisher does not get paid more or less depending on anything happening such as clicks, sign-ups, or sales. Instead, the payment is purely based on how many viewers the ad is served to.
For this reason, paying for an impression is significantly cheaper than paying for a click; hence why they are purchased in groups of 1,000. The price range for CPM is roughly commensurate with the price range for cost per click (CPC). CPM tends to be best used for brand marketing, in which action is less important than message distribution. However, it can also be a cost effective way of a more direct advertisement, provided that it is well designed to inspire action.
As with other online ad distribution systems, CPM is generally best done through networks. Some CPM networks are better than others in certain situations. The exact network that will best suit your needs as an advertiser will depend on what you are striving to accomplish with a campaign. Here are a few that are worth considering.
Tribal Fusion: This is one of the most popular CPM ad networks. They have relatively high CPM rates. In order to become a participating publisher, websites must have at least 500,000 unique users per months. There are a number of other requirements as well such as targeted, relevant, and actively updated content.
Advertising.com: AOL’s CPM network is another popular choice. Much like Tribal Fusion, it has fairly high CPM rates in exchange for well vetted content publishers.
Casale Media: Using this network, advertisers and publishers can have fixed CPM rates rather than bidding rates. This can make it a potentially attractive option from a budgeting perspective. In order to become part of this network, publishers must have at least 50,000 unique visitors per month.
Burst Media: This option offers comparatively detailed targeting for both the advertiser and the publisher. As such, it is a powerful option to make sure that ads are only being served to relevant users. The requirements to be a publisher are relatively low, however, with only 25,000 page views or 5,000 monthly unique visitors needed.
Technorati Media: The largest social media advertising network offers a potentially excellent option for many advertisers. It offers the option for fixed CPM pricing as well as a thoroughly developed programmatic buying toolset.
There are plenty of other CPM options as well; however, we consider these to be generally the best options. They all have their respective advantages for both advertisers and publishers. However, they are also the best way to purchased media on a CPM basis. We recommend trying a few different options and seeing which network or combination of networks generates the biggest bang for your buck. Whether you are seeking a broad distribution of your advertising or a highly targeted campaign, there is a CPM network that will suit your needs.